One-Decision Asset Allocation ETFs (VCIP/VCNS/VBAL/VGRO/VEQT | XBAL/XGRO)

Being a DIY ETF investor is not particularly hard, but up until recently, it was not particularly easy, either. Back in 2017, the simplest portfolio around was Robb Engen’s four-minute portfolio, which consists of only two equity ETFs. If you wanted to reduce your equity exposure you would have had to buy a third ETF for bond exposure.

Three ETFs is pretty simple, but it still requires some thinking for rebalancing and some discipline to rebalance into whatever asset class is down at the time. All of that changed when Vanguard launched their asset allocation ETFs last year.

I’m Ben Felix, associate portfolio manager at PWL Capital. In this episode of Common Sense Investing

One-Decision Asset Allocation ETFs VCIP / VCNS / VBAL / VGRO / VEQT | XBAL / XGRO)

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[jaredmaybeck]

I never comment on videos. I feel compelled to express my gratitude for your content.

[davidandromeda]

Low cost vanguard they are legends..just like jack bogle

[SOStudios]

This video put the nail in the coffin for deciding between a robo advisor and full on DIY. Thanks Ben!

[samersarhan]

Hey Ben, I am impressed by how simply you explained at 4:49 the complex situation when capital loss do not offset interest!

[anaestereo]

Why this educational, instructional, mentoring gem of a video only has 609 likes baffles me... Felix is essentially debunking the argument of I don't have time or skills to manage a Roth IRA that balances stocks and bonds as nearing retirement.. one decision vanguard retirement plans, albeit expensive than the underlying index it's composed of (total us stock mkt+international stock and bonds) is a bargain at 0, 14...

[bluemorris]

Great video. You answered the question I was trying to find an answer to online for about an hour. Thanks for you help.

[bjulienber]

This is such valuable information, thank you for your videos and for the Rational Reminder Podcast. Can't get enough of either. Respect from up in Thunder Bay

[jingloh]

Thanks for this video. Wasn't even aware of all-in-one ETFs.
I decided to use VEQT for my son's RESP since he's under 1 and planning to move through the Vanguard products as he ages.

[huyfamily]

What a fantastic video. Answered all our questions. Thanks Ben!

[Adrian-cnrk]

This is the type of video you have to rewatch or watch in segments to be able to understand. Kind of went over my head and I'm an accounting student

[jonathankrimer]

Ben, Any chance you could do an update? it's been 2 years!

[BanglishBoy]

God, I love your videos. Simple, to the point, and highly informative.

[pjayne]

Wow thank you for introducing me to VGRO just cleaned up my portfolio big time, VGRO will be my foundation and I’ll pick some stocks also on the side

[mike]

Thanks for all you videos, much appreciated!

[blingrb]

Can you please make a caveman version of explaining this video because I didn't understand most of the things you said 😔. I really want to learn this, very interesting.

[jakefarmer]

Hey Ben love your channel! Would you ever make a video showing which tax efficient ETFs are best for TFSA and RRSP? I didn't even know about withholding tax from the US and my TFSA is about 40% maxed out but I just don't know how much I'm missing due to unseen taxes. Thanks in advance keep up the great work.

[cdr_]

Hi Ben! Thanks for the great Canadian content. You say you generally recommend the same asset allocation among all account types, say me and my wife each have a TFSA and an RRSP account, wouldn't having the same asset allocation in all 4 accounts create a lot of overlap? If one account doesn't do well probably all 4 won't do well. Is there a way to diversify the 4 accounts using these one decision fund ETFs? Should each one have a different equity to fixed income ratio? Would you recommend mixing up fund providers, like say you use VGRO in one RRSP, would you use XGRO in the other? We are newbie investors and like the simplicity of one decision funds, just wondering how to diversify them among 4 accounts. Thanks!

[saionline]

Thanks for sharing the information Ben.

[mikewood]

What are the repercussions of switching to a different ETF portfolio as you grow closer to retirement and may want a lower risk asset allocation? I'm thinking about every 10-15 years switching to a lower risk ETF portfolio.

[HamiltonRb]

Love the simplicity of the one solution fund, and you have explained it perfectly. One question for me would be, which would be the best way for a retiree to withdraw monthly or quarterly funds to live on, a one solution fund or a dividend etf such as ZMI or XTR?